Manx Financial Group (LON:MFX) is targeting the Republic of Ireland’s automotive buy now pay later market as part of plans for a wider international expansion.
The Isle of Man based financial services provider, which already lends more than £200 million annually into the UK buy now pay later market with a focus on the automotive sector, is preparing to enter the Irish market by applying for a consumer credit licence. The proposed launch would mark the first step in a broader international rollout which may later extend to other European markets.
The strategy focuses on financing vehicle servicing and repair costs through instalment payment solutions offered at automotive garages. The approach builds on Payment Assist’s existing model, which enables motorists to spread the cost of maintenance and repair work over time.
The Republic of Ireland has a substantial vehicle base that could support the development of automotive focused credit products. There are approximately 2.9 million licensed vehicles in the country, including around 2.3 million private vehicles. A significant portion of these vehicles require regular inspection and servicing. Approximately two million vehicles that are more than three years old must undergo an annual roadworthiness test.
The wider vehicle fleet also includes about 0.4 million goods vehicles, alongside approximately 0.1 million agricultural vehicles. A further 0.1 million vehicles consist of motorbikes or vintage vehicles.
Vehicle ownership levels indicate strong reliance on personal transport. Among the population aged over 16, estimated at 4.1 million people, there are around 0.7 vehicles per capita. The country also has about 3.33 million driving licence holders, equating to roughly 1.15 vehicles per licensed driver.
The automotive servicing market is supported by a network of garages across the country. There are 2,595 garages operating in Ireland. Dublin accounts for the largest concentration, with 623 garages representing about 24 per cent of the total. Cork has 241 garages, approximately 9 per cent, while Meath has 138 garages, about 5 per cent.
Major vehicle retailers operating in Ireland include Eurauto Limited, Windsor Motor Group and Jaguar Land Rover Ireland (Services) Limited, all based in Dublin. None of these companies currently offer buy now pay later services on their websites.
The broader buy now pay later market in Ireland is regulated under the Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Act 2022. The legislation includes a maximum interest rate cap of 23 percent APR.
According to market estimates, the Irish buy now pay later sector was valued at approximately €1.1 billion in 2023. Activity in this market is currently concentrated primarily in e-commerce transactions.
Manx Financial Group’s proposed entry into the Irish automotive servicing market would therefore represent an expansion of buy now pay later financing into a segment that has seen limited adoption of this payment model to date. The company’s application for a consumer credit licence represents the next step in its plan to introduce the service in Ireland.
